MIRA INFORM REPORT

Report Date :

21.12.2012

IDENTIFICATION DETAILS

Name :	RAYMOND APPAREL LIMITED
Registered Office :	C- 10, Industrial Estate, Ambattur, Chennai – 600058, Tamilnadu
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	26.10.2006
Com. Reg. No.:	18-61384
Capital Investment / Paid-up Capital :	Rs. 363.000 Millions
CIN No.: [Company Identification No.]	U18109TN2006PLC061384
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturers and Marketers of Readymade Garments.
No. of Employees :	175 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (67)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 7000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a subsidiary of ‘Raymond Limited’. It is a well-established and a reputed company having a fine track record. It has developed various well-established brands such as Park Avenue and Parx. The financial position of the company appears to be good. Directors are reported to be well-experienced and knowledgeable businessmen. Trade relations are reported as trustworthy. Business is active. Payment terms are regular and as per commitment. The company can be considered good for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Long Term Rating = A+
Rating Explanation	Adequate degree of safety and low credit risk
Date	20.03.2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	C- 10, Industrial Estate, Ambattur, Chennai – 600058, Tamilnadu, India
Tel. No.:	91-44-26241312
Fax No.:	91-44-26254594
E-Mail :	priti.alkari@raymond.in uma.ram@raymond.in
Website :	http://www.raymondindia.com
Corporate Office :	Mahindra Towers, 2^nd Floor, B Wing, Pandurang Budhkar Marg, Worli, Mumbai – 400018, Maharashtra, India
Tel. No.:	91-22-40349999
Head Office :	1^st Floor, Aviation Division, Old R A L Building, Pokhran Road No 1, Jekegram, Thane (West), Thane- 400606, Maharashtra, India
Tel. No.:	91-22/ 61527729 / 40367000
E-Mail :	charter@raymond.in

DIRECTORS

As on 31.03.2012

Name :	Dr. Vijaypat Singhania
Designation :	Chairman
Name :	Mrs. Ashadevi Singhania
Designation :	Director
Name :	Mr. Gautam hari Singhania
Designation :	Executive Vice-Chairman
Name :	Mr. I.D. Agarwal
Designation :	Director
Name :	Mr. Nirvik Singh
Designation :	Director
Name :	Mr. Gaurav Dalmia
Designation :	Director
Name :	Mr. Joydeep Bhattacharya
Designation :	Director
Name :	Mr. Shreyas Joshi
Designation :	Whole – Time Director

KEY EXECUTIVES

Name :	Mrs. Priti Alkari
Designation :	Company Secretary
Name :	Mr. Shreyas joshi
Designation :	President
Name :	Mr. Kiram Kalbag
Designation :	Director Sales and Marketing
Name :	Mr. Hetal Kotak
Designation :	Director Sales and Marketing

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 25.09.2010

Names of Shareholders (Equity Shares)	No. of Shares
Raymond Limited, India	1998919
Raymond Limited, India / JTLY H Sundar	541
Raymond Limited, India / JTLY Thomas Fernandes	108
Raymond Limited, India / JTLY Priti Alkari	108
Raymond Limited, India / JTLY G M Jain	108
Raymond Limited, India / JTLY Aniruddha Deshmukh	108
Raymond Limited, India / JTLY Robert Lobo	108
Total	2000000

Names of Shareholders (Preference Shares)	No. of Shares
Raymond Limited, India	3430000
Total	3430000

As on 25.09.2010

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Bodies corporate	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturers and Marketers of Readymade Garments.

Products :

ITEM CODE NO. (ITC CODE)	PRODUCT DESCRIPTION
Men’s Trousers of Synthetic Fibres	62034300
Men’s Shirts of Cotton	62052002
Men’s Suits of Wool	62031100

GENERAL INFORMATION

No. of Employees :

175 (Approximately)

Bankers :

· Bank of India, M. G. Road, Mumbai – 400 001, Maharashtra, India

· Bank of Maharashtra, Naupada Branch, Gokhale Road, Thane – 400602, Maharashtra, India

· Bank of Rajasthan Limited, Fort Branch , Mumbai, Maharashtra, India

· Axis Bank Limited, Thane Branch, LBS Road, Thane, Maharashtra, India

· HDFC Bank Limited

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2012	As on 31.03.2011
Term Loans from Banks.
Technology Upgradation Fund Scheme (TUFS) (Secured by hypothecation of specified machineries purchased )	1.435	2.935
Repayable within ten years beginning form October 2008 at monthly Installment of Rs.5.210 Millions along with floating interest (current 12.45% per annum)	0.000	20.760
Repayable within four years beginning form January 2010 at monthly Installment of Rs.5.210 Millions along with floating interest (current 12.45% per annum)	36.390	98.910
Working Capital Loans repayable on cemand from Banks (Secured by hypothecation or stock, book debts and other current assets)	1254.383	757.441
Total	1292.208	880.046
Unsecured Loan	As on 31.03.2012	As on 31.03.2011
Debentures: 28,50,000 Zero coipon fully convertible Debentures Rs.100 each held by Holding Company Raymond Limited.	285.000	0.000
Total	285.000	0.000

Banking Relations :	--
Auditors :
Name :	Dalal and Shah Chartered Accountants
Address :	252, Veer Sawarkar Marg, Shivaji Partk, Dadar, Mumbai – 400028, Maharashtra, India
Related Parties where the control exists :	Raymond Limited
Subsidiaries :	Colourplus Fashions Limited
Fellow Subsidiary :	Silver Spark Apparel Limited Celebrations Apparel Limited Raymond Wollen Outerwear Limited JK Files (India) Limited Ring Plus Aqua Limited
Other Related Parties where control exists for the related party stated :	J. K. Helene Curtis Limited J. K. Ansell Limited J. K. Investors (Bombay) Limited
Joint Ventures :	Raymond Zambaiti Limited Raymond Uco Denim Private Limited

CAPITAL STRUCTURE

As on 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
23500000	Equity Shares	Rs.10/- each	Rs.235.000 Millions
5280000	6% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.528.000 Millions
	Total		Rs.763.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
2000000	Equity Shares	Rs.10/- each	Rs.20.000 Millions
3430000	6% Cumulative Redeemable Preference Shares	Rs.100/- each	Rs.343.000 Millions
	Total		Rs.363.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2012	31.03.2011	31.03.2010
SHAREHOLDERS FUNDS
1] Share Capital		363.000	363.000	363.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		1404.782	1112.424	886.060
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		1767.782	1475.424	1249.060
LOAN FUNDS
1] Secured Loans		1292.208	880.046	1050.928
2] Unsecured Loans		285.000	0.000	285.000
TOTAL BORROWING		1577.208	880.046	1335.928
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		3344.990	2355.470	2584.988
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		238.669	219.326	280.967
Capital work-in-progress		7.907	0.000	169.607
INVESTMENT		634.452	634.452	634.771
DEFERREX TAX ASSETS		125.034	134.433	123.702
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	2136.283	1382.999	1025.725
	Sundry Debtors	532.350	373.369	490.984
	Cash & Bank Balances	11.971	7.548	13.022
	Other Current Assets	9.558	251.590	19.343
	Loans & Advances	462.998	391.672	388.317
Total Current Assets		3153.160	2407.178	1937.391
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	580.660	480.570	456.626
	Other Current Liabilities	204.635	528.451	78.261
	Provisions	28.937	30.898	26.563
Total Current Liabilities		814.232	1039.919	561.450
Net Current Assets		2338.928	1367.259	1375.941
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		3344.990	2355.470	2584.988

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Income	5688.192	4687.927	4062.878
		Other Income	45.755	30.540	237.425
		TOTAL (A)	5733.947	4718.467
Less	EXPENSES
		Cost of Raw material and Packing Materials Consumed	1697.058	1135.012
		Purchase of Traded Goods	1323.509	821.844
		Manufacturer and Operating Cost	568.094	418.297	3803.550
		Changes in Inventory	(720.471)	(104.498)
		Employee Benefits	445.018	406.367
		Other Expenses	1763.046	1578.390
		Exceptional Items	0.000	78.654
		TOTAL (B)	5076.254	4334.066	3803.550
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		657.693	384.401	496.753
Less	FINANCIAL EXPENSES (D)		127.253	91.987	108.639
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		530.440	292.414	388.114
Less/ Add	DEPRECIATION/ AMORTISATION (F)		55.600	76.781	117.438
	PROFIT BEFORE TAX (E-F) (G)		474.840	215.633	270.676
Less	TAX (H)		170.003	(10.731)	(74.263)
	PROFIT AFTER TAX (G-H) (I)		304.837	226.364	344.939
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		840.113	613.749	268.810
	BALANCE CARRIED TO THE B/S		1144.950	840.113	613.749
	EARNINGS IN FOREIGN CURRENCY
		Export of goods calculated on FOB Basis	53.200	65.049	57.738
	TOTAL EARNINGS		53.200	65.049	57.738
	IMPORTS
		Raw Materials	63.899	59.478	33.845
		Packing Materials	8.335	17.317	3.280
		Trade Goods	416.008	279.293	73.087
		Stores	0.000	0.030	0.000
		Capital Goods	1.276	0.000	0.000
	TOTAL IMPORTS		489.518	356.118	110.212
	Earnings Per Share (Rs.)		134.22	101.18	160.43

KEY RATIOS

PARTICULARS		31.03.2012	31.03.2011	31.03.2010
PAT / Total Income	(%)	19.97	17.80	8.02
Net Profit Margin (PBT/Sales)	(%)	8.35	4.60	6.66
Return on Total Assets (PBT/Total Assets}	(%)	14.00	8.21	12.20
Return on Investment (ROI) (PBT/Networth)		0.27	0.15	0.22
Debt Equity Ratio (Total Liability/Networth)		1.35	1.30	1.52
Current Ratio (Current Asset/Current Liability)		3.87	2.31	3.45

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	No
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	----------------------
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	----------------------
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

FINANCIAL RESULTS

The net revenue of the company was at Rs.5688.192 Millions (previous year: Rs.4687.927 Millions). Profit after tax after prior period adjustment was Rs.304.837 Millions (Previous year: Rs.226.364 Millions).

The second half of FY12 was challenging due to subdued consumer sentiments. Though the performance of the company was impacted, the strength of the brands it to post topline growth of 21.34%. The strategy of focusing on core brands-Park Avenue, Parx and Raymond Premium Apparel Helped in improving the profit after tax.

With a view to conserve resources for the company’s growth plans, the Directors do not recommend dividend on 6% Cumulative Redeemable Preference Shares and the Equity Shares for the year. A sum of Rs.1132.500 Millions (Previous Year Rs.840.100 Millions) is carried forward to the Balance Sheet.

CONTINGENT LIABILITIES

Rs. In Millions

Particular	31.03.2012	31.03.2011
Claims against the company not acknowledged as debt
Disputed Sales tax Matters	3.902	3.271
Disputed Excise tax Matters	4.112	4.112
Disputed Income tax Matters	7.040	14.167

Note: Future cash flows in respect of above are determinable only on receipt of judgments/ decisions pending with various authorities / forums.

FIXED ASSETS

· Leasehold Land

· Buildings

· Plant and Machinery

· Furniture and Fittings

· Improvements to Leasehold Premises

· Office equipment

· Computers

· Motor Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.84
UK Pound	1	Rs.89.11
Euro	1	Rs.72.47

INFORMATION DETAILS

Report Prepared by :

NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	8
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		67

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.